174880.KQ WACC - Weighted Average Cost of Capital
The WACC of Jang Won Tech Co Ltd (174880.KQ) is 10.2%.
| Range | Selected | |
| Cost of equity | 8.9% - 12.4% | 10.65% |
| Tax rate | 0.7% - 3.2% | 1.95% |
| Cost of debt | 4.0% - 7.7% | 5.85% |
| WACC | 8.4% - 11.9% | 10.2% |
| Category | Low | High |
| Long-term bond rate | 3.1% | 3.6% |
| Equity market risk premium | 5.8% | 6.8% |
| Adjusted beta | 1 | 1.22 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 8.9% | 12.4% |
| Tax rate | 0.7% | 3.2% |
| Debt/Equity ratio | 0.11 | 0.11 |
| Cost of debt | 4.0% | 7.7% |
| After-tax WACC | 8.4% | 11.9% |
| Selected WACC | 10.2% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 174880.KQ | Jang Won Tech Co Ltd | 0.11 | 1.31 | 1.19 |
| 043260.KQ | Sungho Electronics Corp | 2.11 | 1.02 | 0.33 |
| 065690.KQ | Pakers Co Ltd | 2.85 | 1.67 | 0.44 |
| 085670.KQ | Newflex Technology Co Ltd | 0.26 | 1.54 | 1.23 |
| 094970.KQ | JMT Co Ltd | 0.13 | 1 | 0.88 |
| 131400.KQ | Act Co Ltd (Daegu) | 0.05 | 1.56 | 1.49 |
| 208710.KQ | Biolog Device Co Ltd | 0.48 | 1.36 | 0.92 |
| 214430.KQ | i3system Inc | 0.02 | 1.73 | 1.7 |
| 219130.KQ | Tiger Elec Co Ltd | 0.17 | 1.97 | 1.69 |
| 290740.KQ | ActRo Co Ltd | 0.01 | 0.3 | 0.3 |
| Low | High | |
| Unlevered beta | 0.9 | 1.2 |
| Relevered beta | 1 | 1.33 |
| Adjusted relevered beta | 1 | 1.22 |
174880.KQ's CAPM model and how its cost of Equity is calculated
The Cost of Equity reflects the return a company needs to deliver to shareholders to justify the risk of investing in its shares. It’s computed using the Capital Asset Pricing Model (CAPM), which blends the risk-free rate, the stock’s beta, and the market risk premium.
This method evaluates the stock’s risk compared to a safe investment and the market’s overall volatility.
Here’s how we figure out the cost of equity for 174880.KQ:
cost_of_equity (10.65%) = risk_free_rate (3.35%) + equity_risk_premium (6.30%) * adjusted_beta (1) + risk_adjustments (0.25%)
We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.